In today’s world, financial emergencies can arise anytime and anywhere. They can be medical expenses, educational expenses, a sudden business loss, or any other reason for a financial crunch. When this happens, people need a borrowing solution that offers fast approval with minimal documentation. Options like quick loans and express loans are useful here.
But before this, you need to know the difference between quick loans and express loans. Both of them provide quick financial assistance, but they follow different eligibility criteria and provide for different needs. This blog will guide you through these loan types, compare the benefits, and help you choose the best one for your needs.
What is a Quick Loan?
A quick loan is a type of financial product that provides borrowers with a small loan amount with minimal paperwork and quick disbursal. These loans are suitable for individuals who want to cover urgent financial needs like medical emergencies, utility bills, urgent repairs, and other unexpected expenses.
Features of a Quick Loan:
- Quick loan offers fast loan processing. The loan gets approved and disbursed within minutes of disbursal.
- It offers small loan amounts up to a few lakhs, depending on the borrower’s eligibility and the bank’s policy.
- Minimal paperwork is required, only some basic documents for verification, like Aadhar card, PAN card, and bank statements.
- It provides a shorter repayment tenure, which ranges from a few weeks to a few months.
These features of quick loans make them suitable for the borrower who wants quick funds for urgent needs and can repay the loan in a short period.
Eligibility Criteria for a Quick Loan:
- The applicant should be an Indian citizen.
- Salaried or self-employed individuals with a stable income can apply.
- The borrower’s age should be between 23 and 60 years. This criterion can vary from lender to lender.
- The repayment history and credit score of the borrower should be good. With a history of repayment defaulters, the individual might face difficulty in qualifying for a quick loan.
Application Process for Quick Loans:
The application process for a quick loan is straightforward. One can easily apply for a quick loan with minimal documentation and quick approval.
- Visit the lender’s website.
- First, create an account by registering yourself on the website.
- Fill out the application form for the quick loan with your personal details, employment status, income and credit details.
- Also, upload the soft copy of the required documents like ID proof, income proof, address proof, etc.
- The lender will verify the documents and your personal information before approval.
- When you are approved for the loan, the amount will be disbursed to your bank account.
Quick loans are ideal for borrowers who require a small amount for urgent financial needs. The funds from the quick loan can be used for any purpose, like medical bills, utility bills, education needs and unexpected expenses.
What is an Express Loan?
An express loan offers quick processing and allows you to apply for large amounts of funds. It is more suitable for financial needs that require more funds, such as home renovations, large medical expenses, wedding expenses, and other higher expenses.
Features of an Express Loan:
- It offers higher loan amounts, ranging from 10 lakhs or more. It depends on the bank’s policies.
- Only some major documentation is required, like ID proof and income proof.
- It offers ultra-fast processing. The loan is approved and verified in just a few minutes or hours.
- It offers flexible repayment tenure, which can exceed up to 5 years.
Eligibility Criteria for an Express Loan:
- Salaried employees, self-employed individuals, and business owners are eligible for express loans.
- Some lenders may require the borrower to have a minimum income to approve a loan.
- The minimum age of the borrower should be 21 years.
- Relationships with the bank should be strong and have a good credit score.
Application Process for Express Loan:
The application process for an express loan is quite easy. You can easily apply for an express loan by following these steps:
- Open the lender’s website.
- Register yourself on the website if you are a new user.
- Fill out the application form for an express loan with all the required details related to personal details, income details, employment status and credit details.
- Also, upload soft copies of the required documents.
- The lender will verify your details and check your creditworthiness for approval.
- After the approval, the loan amount will be disbursed to your account within minutes or a few hours.
Express loans are ideal for those who require a large amount of financial assistance without any lengthy documentation and approval process. They offer quick approval and easy processing, making them a good option when needed.
Quick Loan vs Express Loan: Key Differences
Understanding the difference between quick loans and express loans is necessary before making a choice. The choice depends on the amount needed, approval time, and the repayment terms. This table shows the key differences between quick loans and express loans and helps you make a knowledgeable decision:
| Features | Quick Loans | Express Loans |
| Approval Time | It takes a few minutes for approval. | Approval is fast. It takes a few hours. |
| Interest Rates | Interest rates are moderate to high. | Interest rates are mostly high due to instant approval. |
| Loan Amount | The loan amount varies depending on the lender’s criteria. Usually small to medium. | The loan amount ranges from small to large (10 lakhs or more). |
| Repayment Tenure | Its tenure is short-term. Ranges from a few weeks to a few months. | Its repayment tenure can exceed up to 5 years. |
| Processing Fees | Processing fees are applicable, but usually it is low. | Processing fees are usually high because of expedited processing. |
You can refer to this table for a clear comparison between quick loans and express loans. This will help you choose the best option according to your financial needs and repayment capability.
Which Loan Should You Choose?
Both quick loans and express loans provide you with support in your financial crunch. But choose the loan according to your needs and circumstances. Here is the guide for which loan is better in which situation:
When is a Quick Loan Better?
A quick loan is better when you require a small or medium loan amount. It offers you support on slightly lower interest rates. This option is best for your planned expenses like renovations, business investments, etc., where there is no urgent need, and you can wait for some time for the amount disbursement.
When is Express Loan Better?
When there is an immediate need for a large amount of cash and you want it within a few hours, like for medical emergencies, last-minute travel plans, or immediate funds for any urgent situation. It offers loans at higher interest rates but provides faster disbursement for your convenience.
Factors to Consider Before Applying
- Urgency: If you need funds urgently, you should go for quick loans.
- Loan Amount: If you want a small loan amount, you should take out a quick loan, as they also provide support at a lower cost.
- Interest Rates: Express loans come with higher interest rates and processing costs.
- Repayment Flexibility: Compare the repayment terms of both the loans and choose the one that better aligns with your finances.
Choosing the loan should completely depend on your urgency to get the funds, the loan amount that you need and the costs related to the loan that you are willing to pay. Before applying for a loan, compare the lenders and types of loans to find the best fit for you.
Pros and Cons of Quick and Express Loans
Both quick loans and express loans are there to provide you relief during emergencies, but they come with some advantages and disadvantages. Here is the list of the pros and cons of quick and express loans:
Quick Loans:
Pros:
- Offers loans at slightly lower interest rates than the express loans.
- Suitable for expenses where you don’t need immediate funds.
- Many lenders offer quick loans, so you can compare the lenders and get loans on better terms.
- The application process is easy and fast processing with minimal documentation.
Cons:
- Approval can take a few hours or even a day.
- Some lenders also charge you processing fees over the interest, which increases the overall cost of borrowing.
Express Loans:
Pros:
- The loan gets instantly approved within a few minutes or a few hours, which makes it best for emergencies.
- The whole application process is digital, which makes it easy and quick to apply.
- Only some major documents are required.
- Offers loans of large amounts of ₹10 lakhs or more.
Cons:
- These loans come with higher interest rates than quick loans.
- Interest rates are higher because they are unsecured loans.
- Processing fees are also comparatively higher as it offers instant approval.
Conclusion
Both the quick and express loans provide financial support, but which is the best option for you completely depends on your needs and situation. Quick loans are best for those who require small loan amounts, which are provided at lower interest rates. But apply for a quick loan only if there is no emergency and you can wait a few hours for approval. Express loans are ideal for emergencies as they provide quick approval and disbursal.
Make a responsible and thoughtful decision according to your financial needs. The terms of loans should align with your financial situation and your ability to repay. Considering all these things before applying for a loan will help you avoid any unnecessary debt burden.
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